Tower Semiconductor jumps as TSEM secures $1.3 billion silicon photonics orders

Tower Semiconductor (TSEM) said May 13, 2026, it secured $1.3 billion in silicon photonics-related orders for 2027, sending its U.S.-listed shares up more than 17% in premarket trading as AI data center demand boosts high-speed interconnect suppliers. The Israel-based foundry forecast second-quarter revenue of about $455 million, above analysts’ estimate of $436.4 million. Tower said customers have paid $290 million in advance to reserve future capacity. First-quarter revenue rose 15% from a year earlier to $414 million, topping expectations of $411 million, while adjusted earnings of 65 cents a share beat estimates of 56 cents. CEO Russell Ellwanger said the company remains on track toward 2028 targets of $2.8 billion in revenue and $750 million in net income. Tower specializes in analog, mixed-signal, RF and sensor processes, areas relevant to silicon photonics. GlobalFoundries (GFS) sued Tower in March, alleging infringement of 11 semiconductor manufacturing patents.